Chile stocks, peso fall in wake of global rout

SANTIAGO, March 30 (Reuters) - Chile's peso was down over 1 percent while blue-chip stocks retreated more than 2 percent on Monday, tracking Wall Street and other regional markets.

The peso was trading 1.5 percent weaker at 581.70/582.00 per dollar, compared to Friday's close at 572.70/573.20, it closed at its highest level since early October.

"Once again the effects of the crisis are being felt, with worries about global market stability given the situation facing the (U.S.) automotive sector," said one currency dealer, asking not be be named in line with policy.

Major U.S. indexes fell on Monday after the Obama administration raised the specter of bankruptcy for U.S. automakers General Motors GM.N and Chrysler. Sentiment was also pressured after Spain had to rescue a regional bank, adding to concerns about the state of the global financial system.

Chile's blue chip IPSA share index .IPSA tracked other regional markets, falling 2.0 percent to 2,496 points, while the all-market IGPA index .IGPA was down 1.6 percent at 11,906 points.

"The whole issue of the United States (auto industry) and the state of Europe and Asia are weighing in," said Roberto Guzman, head of investments at the FIT Research brokerage in Santiago.

"They are dragging down the markets, although Chile is falling to a lesser extent, which goes hand in hand with lower trade volumes."

Chilean stocks were led lower by resource companies, with copper manufacturing company Mandeco MAD.SN falling 34 percent to 28.110 pesos per share after the company announced the end of a dividend option.

Stock in Soquimich (SQM_pb.SN), Chile's leading exporter of fertilizer and the world's biggest producer of iodine and lithium, fell 4.8 percent to 15,499 pesos per share.

Chile forestry and paper company CMPC CAR.SN, which last week placed around $364 million in local bonds, were down 4 percent and stock in CAP (CAP.SN), Chile's largest steel and iron ore producer, tumbled 2.78 percent.

Chile's largest banks, Santander Chile (STG.SN) and Banco de Chile CHI.SN were down 0.86 percent and 0.52 percent respectively. (Reporting by Froilan Romero and Manuel Farias; writing by Alexia Vlahos; Editing by Diane Craft)